By Sheri Kasprzak
New York, Aug. 4 - Nuvelo Inc. said it has secured a committed equity financing facility from Kingsbridge Capital Ltd. for up to $75 million.
Under the terms of the facility, Kingsbridge may buy shares from Nuvelo over three years at the greater of $2.50 or 85% of the company's share price the day before each draw. The shares will be drawn in tranches of the lesser of $10 million or 2.5% of Nuvelo's market capitalization at the time of draw. Each tranche will be priced over an eight-day period.
Kingsbridge also received warrants for 350,000 shares, exercisable at $12.07 each - a 30% premium to the company's average closing stock price for the five trading days before the agreement date. The warrants expire in five years.
Based in Sunnyvale, Calif., Nuvelo is a biopharmaceutical company focused on therapies for cancer and cardiovascular ailments. The proceeds will be used for clinical and corporate development.
| Issuer: | Nuvelo Inc.
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| Issue: | Committed equity financing facility
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| Amount: | $75 million (maximum)
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| Tenor: | Three years
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| Price: | The greater of $2.50 per share or 85% of the company's share price the day before each draw
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| Warrants: | For 350,000 shares
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| Warrant expiration: | Five years
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| Warrant strike price: | $12.07
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| Settlement date: | Aug. 4
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| Stock price: | $9.09 at close Aug. 4
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